Suncorp Superannuation
Understanding Investment Risk flyer
Issued 27 May 2017
The information in this document forms part of the following:
• Suncorp Brighter Super Personal Super and Pension Product Disclosure Statement issued 30 May 2016
• Suncorp Brighter Super for Business Product Disclosure Statement issued 27 May 2017
• Suncorp Employee Superannuation Plan Product Disclosure Statement issued 3 December 2016
Investing in super carries various levels of risk. The level of investment risk varies for each person depending on things like their age, how
long they plan to keep their investment for, what other investments they may have, and their own tolerance for risk.
As a general rule, investment options with a higher level of risk will provide a higher potential return. By the same token, the smaller the risk
the investment option poses, the smaller the potential return it will provide.
What’s important is to understand that:
What is the Standard Risk Measure?
• The value of your investments (and thus your super account
balance) may go up or down.
The Standard Risk Measure (SRM) is a calculation we do to help
make it easier for you to compare the riskiness of investment
options. Technically it tells you how many negative annual returns an
investment option can be expected to deliver over any 20-year period.
But to keep things simple, we then give each investment option a risk
band (1 being the lowest risk and 7 being the highest) and label.
• Investment performance is not guaranteed, which means you
could lose some or all of your money.
• Investment returns will vary. Just because an investment has done
well in the past doesn’t necessarily mean it will do well in future.
• Laws affecting super (such as superannuation, taxation and social
security laws) change.
• Different strategies may carry different levels of risk, depending
on the assets (such as cash, shares, term deposits etc) that
make up the strategy.
There are several ways you can learn about and manage
investment risk:
• Our online risk profiler tool can help you see where you stand
on your attitude to risk. Or if you prefer, you can give us a call and
we’ll help you.
The SRM is just one way of measuring risk and is not a complete
assessment of all types of risk. For example, it doesn’t measure what
the size of a negative return could be, or the impact of fees or tax.
Nor does it take into account the impact of the administration fee
or any part of the management fee that is not paid to an investment
manager. You should still ensure you’re comfortable with the risks
and potential losses associated with your chosen investment
option(s) before you make a decision.
This next table shows the different SRMs:
Risk
Band
Risk Label
Estimated number of negative annual
returns over any 20-year period
• Reduce risk via diversification. The most common way to
reduce your risk is by diversification, or ‘not putting all your eggs in
one basket’.
1
Very Low
Less than 0.5
2
Low
0.5 to less than 1
3
Low to medium
1 to less than 2
• Take a look at the Product Guide which goes into more detail
on risk.
4
Medium
2 to less than 3
• Check out the latest ‘Standard Risk Measures’ in this flyer
which help you compare the riskiness of each of our investment
options.
5
Medium to high
3 to less than 4
6
High
4 to less than 6
7
Very high
6 or greater
Suncorp Superannuation Understanding Investment Risk flyer
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Understanding Investment Risk
Standard Risk Measure calculation methodology
We calculate our SRMs by forecasting long-term investment class return, risk (volatility) and correlations (correlation just means how different
things relate to each other). This is technically termed a ‘mean-variance model’.
Using the returns, risk and correlation measures for each individual investment class, as well as the strategic asset allocation (that’s its longterm target investment mix) of each investment option, we can forecast the investment option’s total risk and return characteristics. We can
then model the risk of each investment option having a negative return over a 20-year period.
This next table shows the SRM for each investment option.
Risk band
Risk label
Estimated number of
negative annual returns
over any 20-year period
Suncorp Lifestage Fund 1934 or earlier
3
Low to medium
1 to less than 2
Suncorp Lifestage Fund 1935-1939
3
Low to medium
1 to less than 2
Suncorp Lifestage Fund 1940-1944
3
Low to medium
1 to less than 2
Suncorp Lifestage Fund 1945-1949
3
Low to medium
1 to less than 2
Suncorp Lifestage Fund 1950-1954
4
Medium
2 to less than 3
Suncorp Lifestage Fund 1955-1959
4
Medium
2 to less than 3
Suncorp Lifestage Fund 1960-1964
5
Medium to high
3 to less than 4
Suncorp Lifestage Fund 1965-1969
5
Medium to high
3 to less than 4
Suncorp Lifestage Fund 1970-1974
5
Medium to high
3 to less than 4
Suncorp Lifestage Fund 1975-1979
6
High
4 to less than 6
Suncorp Lifestage Fund 1980-1984
6
High
4 to less than 6
Suncorp Lifestage Fund 1985-1989
6
High
4 to less than 6
Suncorp Lifestage Fund 1990-1994
6
High
4 to less than 6
Suncorp Lifestage Fund 1995-1999
6
High
4 to less than 6
Suncorp Lifestage Fund 2000-2004
6
High
4 to less than 6
Morningstar Conservative Fund*
2
Low
0.5 to less than 1
Perpetual Wholesale Conservative Growth Fund*
5
Medium to high
3 to less than 4
Suncorp Universal Conservative Fund
3
Low to medium
1 to less than 2
3
Low to medium
1 to less than 2
Morningstar Balanced Fund*
4
Medium
2 to less than 3
Perpetual Wholesale Diversified Growth Fund*
6
High
3 to less than 6
Suncorp Universal Balanced Fund
5
Medium to high
3 to less than 4
BlackRock Wholesale Balanced Fund*
5
Medium to high
3 to less than 4
Morningstar Growth Fund*
5
Medium to high
4 to less than 6
Suncorp Traditional Growth Fund
6
High
4 to less than 6
Suncorp Universal Growth Fund
6
High
4 to less than 6
Morningstar High Growth Fund*
6
High
4 to less than 6
Suncorp Traditional High Growth Fund
6
High
4 to less than 6
Investment option
Suncorp Lifestage Funds
Diversified investment options
Conservative
Moderate
Morningstar Moderate Fund*
Balanced
Growth
High Growth
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Understanding Investment Risk
Risk band
Risk label
Estimated number of
negative annual returns
over any 20-year period
1
Very Low
Less than 0.5
Suncorp Australian Fixed Interest Fund
6
High
4 to less than 6
Vanguard Australian Fixed Interest Index Fund*
4
Medium
2 to less than 3
6
High
4 to less than 6
6
High
4 to less than 6
6
High
4 to less than 6
Ironbark Paladin Property Securities Fund*
6
High
4 to less than 6
Suncorp Australian Listed Property Index Fund
7
Very high
6 or greater
Suncorp Global Property Index Fund
7
High
6 or greater
Suncorp International Property Securities Index Fund (Hedged)
6
High
4 to less than 6
Ausbil Australian Active Equity Fund*
6
High
4 to less than 6
Ausbil Australian Emerging Leaders Fund*
7
Very high
6 or greater
BT Wholesale Imputation Fund*
6
High
4 to less than 6
Fidelity Australian Equities Fund*
6
High
4 to less than 6
Hyperion Australian Growth Companies Fund*
6
High
4 to less than 6
Investors Mutual All Industrials Share Fund*
6
High
4 to less than 6
Ironbark Karara Australian Share Fund*
6
High
4 to less than 6
Nikko AM Australian Share Income Fund*
6
High
4 to less than 6
Perpetual Wholesale Ethical SRI Fund*
7
Very high
6 or greater
Perpetual Wholesale Geared Australian Share Fund*
7
Very high
6 or greater
Perpetual Wholesale Industrial Share Fund*
7
Very high
6 or greater
Perpetual Wholesale SHARE-PLUS Long-Short Fund*
6
High
4 to less than 6
Suncorp Australian Shares Index Fund
6
High
4 to less than 6
Suncorp Australian Shares Multi-Manager Fund
6
High
4 to less than 6
Suncorp Australian Shares Value Fund
6
High
4 to less than 6
Zurich Investments Equity Income Fund*
6
High
4 to less than 6
BlackRock Global Allocation Fund*
6
High
4 to less than 6
Colonial First State Wholesale Global Resources Fund*
7
Very High
6 or greater
Grant Samuel Epoch Global Equity Shareholder Yield (Unhedged) Fund*
6
High
4 to less than 6
Lazard Global Small Cap Fund*
6
High
4 to less than 6
Platinum International Fund*
6
High
4 to less than 6
Suncorp International Shares Index Fund
6
High
4 to less than 6
Suncorp International Shares Multi-Manager Fund
6
High
4 to less than 6
Investment option
Cash
Suncorp Cash Fund
Australian fixed interest
®
International fixed interest
Vanguard® International Fixed Interest Index Fund (Hedged)
Diversified fixed interest
Macquarie Diversified Fixed Interest Fund*
Global credit
Colonial First State Wholesale Global Credit Income Fund
Australian property
International property
Australian shares
International shares
Suncorp Superannuation Understanding Investment Risk flyer
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Understanding Investment Risk
Investment option
Walter Scott Global Equity Fund*
Risk band
Risk label
Estimated number of
negative annual returns
over any 20-year period
5
Medium to high
3 to less than 4
6
High
4 to less than 6
1
Very Low
Less than 0.5
3
Low to medium
1 to less than 2
5
Medium to high
3 to less than 4
6
High
4 to less than 6
1
Very Low
Less than 0.5
7
Very High
6 or greater
6
High
4 to less than 6
Alternatives
Lazard Global Listed Infrastructure Fund*
Closed (these options are closed to new members)
Secure
Suncorp Traditional Capital Guaranteed Fund
Conservative
Suncorp Traditional Conservative Fund
Balanced
Suncorp Traditional Balanced Fund
Growth
Colonial First State Wholesale Diversified Fund*
Cash
Suncorp Guaranteed Cash Fund
Australian listed property
Colonial First State Wholesale Property Securities Fund*
Australian shares
Colonial First State Wholesale Australian Share Fund*
* The SRM for this investment option was provided by the investment manager.
We’re always happy to help
At anytime you can check out our online risk profiler tool.
How to contact us
If there’s anything else you’d like to know, our contact details are below. We’ll be happy to help.
Suncorp Brighter Super
13 11 55 – Customers
GPO Box 2585
Brisbane QLD 4001
1800 066 745 – Financial Advisers
Fax – 1300 172 693
[email protected]
Suncorp Employee
Superannuation Plan
Phone – 1800 652 489
GPO Box 2585 (IPC: LS004)
Brisbane QLD 4001
[email protected]
Fax – 07 3002 3259
suncorp.com.au/super
suncorp.com.au/super
Suncorp Portfolio Services Limited (Trustee) (ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059) is the trustee of Suncorp
Brighter Super and is the Suncorp Employee Superannuation Plan and the issuer of this flyer (and any information incorporated by reference) and
takes responsibility for its contents.
This flyer, prepared on 27 May 2017 provides a summary of the key Standard Risk Measure information you need to make a decision.
It includes references to additional information that is part of the relevant Product Disclosure Statement (PDS) which is material incorporated
by reference.
The information in this flyer is general information only and doesn’t take into account your personal objectives, financial situation or needs. Before
making a decision, you should consider the information in the PDS and should obtain financial advice tailored to your personal circumstances.
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